DoD agencies may perform work for other agencies only if which condition applies?

Study for the Certified Defense Financial Manager (CDFM) Exam 1. Engage with flashcards and multiple choice questions, with hints and explanations for each query. Prepare confidently for your exam!

Multiple Choice

DoD agencies may perform work for other agencies only if which condition applies?

Explanation:
Interagency work is allowed only when the private sector cannot provide the needed goods or services as conveniently or cheaply. This keeps do-not-duplicating private industry work and saves money by using private vendors when they can supply the requirement at a lower cost or with similar convenience. If the private market can deliver conveniently and cheaply, interagency arrangements aren’t appropriate. The other options don’t match this principle because they rely on internal capacity, absolute permission, or avoiding the private market altogether, which isn’t how these interagency actions are intended to work.

Interagency work is allowed only when the private sector cannot provide the needed goods or services as conveniently or cheaply. This keeps do-not-duplicating private industry work and saves money by using private vendors when they can supply the requirement at a lower cost or with similar convenience. If the private market can deliver conveniently and cheaply, interagency arrangements aren’t appropriate. The other options don’t match this principle because they rely on internal capacity, absolute permission, or avoiding the private market altogether, which isn’t how these interagency actions are intended to work.

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